Does Switching Banks Affect Your Credit Score?

Switching to a better current account can earn you a cash bonus, better perks or a smoother app, but many people hold back for fear of harming their credit score.

So does moving banks actually damage your credit?

Switching your current account has very little lasting effect on your credit score. Opening a new account may involve a "hard" credit check that leaves a temporary mark, but the Current Account Switch Service moves everything across smoothly and closes your old account, so there is no long-term harm to a healthy credit profile.

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How the Current Account Switch Service Works

The Current Account Switch Service (CASS) is a free, guaranteed service backed by most UK banks. When you switch, it:

• Moves your balance to the new account.
• Transfers all your incoming payments (like your salary) and outgoing payments (direct debits and standing orders).
• Redirects any payments sent to your old account for at least three years.
• Closes your old account automatically.

The whole process is guaranteed to complete within seven working days, and the switch guarantee means you are refunded any charges caused by mistakes in the process. Because it handles everything for you, there is little risk of missed payments — which are what genuinely damage a credit score.

Hard Checks vs Soft Checks When Switching

Understanding the two types of credit check is key:

Soft checks

A soft search happens when you (or a company doing a background check) look at your credit file. Soft searches are not visible to lenders and have no effect on your score. Checking your own eligibility for an account is usually a soft check.

Hard checks

A hard search happens when you formally apply for credit or, often, a new current account — especially one with an arranged overdraft. A hard search is visible to lenders and can nudge your score down by a few points for a short time.

It usually fades from view within about a year and drops off your file after two years.

So the small, short-term dip from switching comes from the new account's hard search, not from the switch itself.

Will Switching Really Hurt My Score?

For most people, the honest answer is: barely, and not for long. A single hard search has a minor, temporary effect. What matters far more to your score is:

• Making payments on time.
• Not being close to your credit limits.
• Being on the electoral register.
• A settled, consistent financial history.

There are a couple of things worth knowing:

• Multiple applications in a short time look riskier to lenders than one. If you are also applying for a mortgage or loan soon, it may be worth timing your switch so it is not clustered with those applications.
• Closing your oldest account can slightly shorten your average account age, but CASS closing a current account rarely has a meaningful impact.

Check Your Score Before and After

It is good practice to know where you stand before making any financial move. You can do this without paying:

• Learn how in how to check your credit score for free.
• Understand what a poor score looks like in lowest credit score.
• Build your profile back up with what are 5 ways to build your credit score.

Checking your own score is always a soft search, so you can do it as often as you like with no impact.

Frequently Asked Questions

Does switching bank accounts leave a mark on my credit file?

Opening the new account often involves a hard search, which leaves a temporary footprint. The switch and the closure of the old account themselves do not harm your score.

How long does a hard search affect my score?

Its impact is small and usually fades within a few months, and the search drops off your credit file after around two years.

Should I avoid switching before applying for a mortgage?

It is sensible not to cluster lots of credit applications together just before a mortgage. Spacing a current account switch away from a mortgage application avoids a run of hard searches close together.

Can switching banks improve my credit score?

Switching itself will not raise your score, but a new account with better tools — budgeting features and alerts — can help you manage money well, and good money management is what improves your score over time.

This article is general information and not financial advice. Your individual circumstances and credit history will affect any decision, so consider your own position before switching accounts.